Have Banks Finally Put the Crisis Behind Them?

1/11/2013 11:03AM

Wells Fargo's profit jumps but American Express is cutting over 5,000 jobs. Ahead of several banks reporting earnings next week, David Benoit joins Markets Hub to discuss the health of the banking sector. Photo: AP.

This transcript has been automatically generated and may not be 100% accurate.

... I ... forty years forty years since the bank's ... first ... into the price of two thousand ate like one of the banks through the crisis that is this the fourth quarter two thousand twelve ... earnings are coming out now we're looking at four years later the bank for Wells Fargo reported earnings this morning ... day Benoit Deal Journal blogger here ... Wells Fargo this one ... aam was for a did not look ... too bad ... profit was up twenty four percent a little over five billion dollars ... of revenue was up both beat expectations ... on ... the one thing to worry about for Wells Fargo ... which is banned the store he hit the last year for them ... is is their margins and constantly what they need to ... know when a man lay down get interest from you versus what they paid rival the right and that is the narrow the ... right and part that is just selling ... environment that we're in right now it's keeping rates the Israelis really nothing to do with Wells Fargo's management ... aam ... it's it's all about the economy and they're they're just the most susceptible to it so ... DeVry is way down from last year I think it was three point five six percent in March ... you know it's not very good night to see the stock was either that or earlier the stock was down a will that that the numbers investors focused on right ... Wells Fargo reported today with all the big banks next week I wrote a JPMorgan Citigroup Goldman Morgan Stanley and all I were to read BankAmerica right ... interesting stories early this week in American Express lead last night to to to lay off people ... Morgan Stanley earlier this week that they're going to help people ... what's going on in the banking sector and so ... I'm kind of the same thing that day Wells Fargo is facing these guys essentially it's it's ... profitability is becoming harder and harder for these things and I'm ... a good there ... fine in a difficult sell when the money they're finding it difficult to make ... new trains because of new regulations so they can do is much of that kind of side ... activity boosted profits ... essentially their their online back to being ... normal ... for fashion warnings stodgy ... and and there's not all that much profit millionaire especially for all these high for the ... Wall Street trader and it got sitting around so Morgan Stanley's Lasser alot of ... Iraq people I echelon ruined back all the awesome was in consolidation was bankers right ... an American stresses little bit of a different story they ... they have had ... years ago your member that pushed into ... actual like regular credit cards to us is ... to charge card and pay off every month ... and in the unit gets ... most of the job losses they announced last night ... is actually a travel search essential if ... they ... just got hammered when you know it's the it's really what number should we be looking for next week and the banks and the size of profits and revenue were important things to keep an eye on right so so quite awhile Sparton think you're no one wants that the margins across the board ... aam I think a loan growth is can be interesting Wells Fargo had actually pretty decent long growth ... um but some of the bank's a kind of war and ... meeting up in the year your member that fiscal cliff than was going on we were really sure was happening ... aam and the injustice if anyone could take ... on that more than others that might be not a great sign for it ... aam ... and then you know typical trading stuff ... you know who who did well ... that and navigating what was kind of a ... a tricky market were then the court ... did not take very much excellent stuff off ...